Significantly progressed strategic pillars of Operational Excellence,
Commercial Excellence, and Strategic Growth. Completed Phase 1
Operational Excellence, which delivered a total of $16 million in
savings, and on track to achieve $13 million of Phase 2 cost savings

Advanced strategic value chain repositioning and manufacturing
optimization initiative starting with planned Q4 maintenance stoppage.
Further improvement actions planned for 2018, that are expected to
begin delivering earnings improvement in late 2018 with the full
benefit materializing in 2019

Financial Highlights

Delivered Q4 and full year 2017 results in line with expectations

Q4 sales were up 15% compared with prior year due to strength in the
FHN segment (up 29%) attributable to the Novel and NutraGenesis
acquisitions, while selling prices and base business volumes both
stabilized

Q4 GAAP Net Income and EPS were adversely impacted by $17 million of
provisional non-recurring tax reform charges and $5 million of pre-tax
purchase accounting and M&A related expenses. Without the tax reform
charges Q4 GAAP diluted EPS would have been higher by $0.89

Q4 Adjusted EBITDA of $27 million was up 3% year-over-year despite a
$4 million impact from the previously announced maintenance stoppage

Working capital continued to be managed at historically low levels.
Excluding last year’s sizable working capital improvement, cash flow
was on par with 2016

Providing 2018 full-year guidance of 12% to 14% revenue growth, with
more than double GAAP EPS and 10% to 14% Adjusted EPS growth

“2017 was a year of great progress for Innophos as we implemented our
Vision 2022 strategic roadmap to transform the growth profile of the
company, increase our presence in attractive Food, Health and Nutrition
end-markets, and develop innovative solutions that better serve our
customers,” said Kim Ann Mink, Ph.D., Chairman, President and Chief
Executive Officer.

“We closed on two strategic acquisitions, strengthened the foundation of
our organization with the addition of top-tier talent, delivered
bottom-line benefits through our Operational Excellence initiatives, and
advanced our efforts to be viewed as a partner-of-choice with our focus
on Commercial Excellence,” said Mink. “Further, we finished the year
with fourth-quarter and full-year results that were in line with our
expectations.”

Mink continued, “The acquisitions of Novel Ingredients and NutraGenesis
are important steps forward in strengthening our growth profile. The
integrations of both companies are well underway, and we remain
confident in our ability to improve EBITDA margins by delivering the $4
million of identified cost synergies from Novel as well as capitalizing
on cross-selling opportunities.”

“Last quarter we announced the pursuit of a strategic value chain
repositioning and manufacturing optimization initiative beginning in Q4
2017. This program, which will be phased throughout 2018, demonstrates
our continued commitment to further strengthen the competitive position
of our cash-generative core phosphates product portfolio. Following
targeted 2018 capital investments, we expect to meaningfully improve
earnings, free cash flow and return on invested capital (ROIC) in future
years, starting at the back end of 2018.”

“The actions we have taken this past year, and those that are in our
pipeline for 2018, position Innophos to continue advancing toward our
Vision 2022 targets and deliver sustainable growth for shareholders. We
remain steadfastly focused on capitalizing on inorganic growth
opportunities in high-growth end-markets; executing on our value chain
repositioning and manufacturing optimization program; developing new and
innovative science-backed solutions that leverage our recently acquired
assets, deliver enhanced value to our customers and address growing FHN
mega trends; as well as completing our Phase 2 Operational Excellence
initiative.”

“As a result, we expect to deliver mid-teens revenue and earnings per
share growth in 2018 compared to 2017 -- a reflection that our strategic
roadmap is fully in action and is positioning Innophos to maximize
shareholder value,” concluded Mink.

Fourth Quarter Results

Variance $ and Variance % in the following tables may not foot due to
rounding

$ Millions except EPS

Quarter 4

2017

2016

Variance $

Variance %

Sales

193

168

25

15%

Net Income

(11)

9

(21)

(220)%

Adj. Net Income

10

10

---

(1)%

EBITDA

21

25

(3)

(14)%

Adj. EBITDA

27

26

1

3%

Diluted EPS

(0.58)

0.47

(1.05)

(222%)

Adj. Diluted EPS

0.52

0.52

---

---

Cash from Ops

34

57

(23)

(41)%

Free Cash Flow

17

46

(29)

(63)%

Q4 sales were up 15% compared with the prior year due to strength in
the FHN segment attributable to acquisitions, while selling prices and
base business volumes both stabilized

GAAP Net Income and EPS were adversely impacted by $17 million of
provisional non-recurring tax reform charges and $5 million of pre-tax
purchase accounting and M&A related expenses

Despite the $4 million pre-tax maintenance stoppage costs communicated
in Q3, adjusted Net Income and Adjusted EBITDA margin were flat and up
3%, respectively

Cash flow was positive but comparatively down as expected due to large
working capital improvements and tax refunds in the prior year period

Free cash flow of $17 million was used for dividends and debt
reduction after borrowing $28 million for the NutraGenesis
acquisition. Net leverage was 2.3x at the end of Q4

Capex of $17 million was up $6 million versus the prior year quarter,
due to the successful mechanical completion of the Geismar deep well
project, initial payments toward 2018 strategic capital and the
aforementioned maintenance stoppage

Fourth Quarter Segment Financials

Sales

2017 $ Millions

2016 $ Millions

Variance $

Variance %

FHN

116

90

26

29%

IS

64

62

2

4%

Other

13

16

(3)

(16)%

Total Innophos

193

168

25

15%

Adj. EBITDA

2017 $ Millions

2016 $ Millions

2017 Margin

2016 Margin

FHN

22

19

19%

22%

IS

3

7

4%

11%

Other

3

---

21%

2%

Total IPHS

27

26

14%

16%

Note: See Adjusted EBITDA reconciliation to EBITDA in the financial
tables that follow

FHN represented 60% of total Company sales in Q4 and were up 29% YOY
due to the contribution from acquisitions; margins were consistent
with prior 2017 quarters yet 287 bps below 2016 due primarily to
product mix

IS sales were up 4% on higher volumes more than offsetting price
pressure in technical grade products; margins of 4% were down from the
prior year due primarily to maintenance stoppage costs

Other sales were down 16% due to reduced volumes to low-value
fertilizer markets. Other margins were 21%; the December 2016 tolling
arrangement has resulted in the avoidance of margin volatility that
was seen in prior years

Full Year Results

Variance $ and Variance % in the following tables may not foot due to
rounding

$ Millions except EPS

YTD Quarter 4

2017

2016

Variance $

Variance %

Sales

722

725

(3)

(1)%

Net Income

22

48

(26)

(53)%

Adj. Net Income

49

50

(2)

(3)%

EBITDA

104

115

(11)

(10)%

Adj. EBITDA

120

122

(2)

(2)%

Diluted EPS

1.13

2.44

(1.30)

(54)%

Adj. Diluted EPS

2.46

2.55

(0.09)

(3)%

Cash from Ops

81

139

(58)

(42)%

Free Cash Flow

39

103

(63)

(62)%

Full year sales comparisons reflect the effects of the H2 2016 pruning
actions management took on lower margin, less differentiated
applications, largely offset by the benefit of sales from acquisitions

2017 Adjusted EBITDA Margin of 17% was largely in line with prior year

Adjusted EPS of $2.46 is down $0.09, or 3%, YOY and includes $0.08 of
additional maintenance stoppage costs for the year

Cash flow variances were unfavorable to prior year when working
capital as a percent of sales was reduced by 690 bps

Full year 2017 capex of $41 million was $5 million higher than 2016
due primarily to the Geismar deep well project that is now
mechanically complete

Full Year Segment Financials

Sales

2017 $ Millions

2016 $ Millions

Variance $

Variance %

FHN

397

377

21

6%

IS

263

278

(16)

(6)%

Other

62

70

(8)

(12)%

Total Innophos

722

725

(3)

(1)%

Adj. EBITDA

2017 $ Millions

2016 $ Millions

2017 Margin

2016 Margin

FHN

75

80

19%

22%

IS

37

38

14%

14%

Other

8

4

13%

5%

Total IPHS

120

122

17%

17%

Note: See Adjusted EBITDA reconciliation to EBITDA in the financial
tables that follow

FHN full year sales represented 55% of total Company sales and were up
6% due to the contribution of acquisitions

IS full year sales were down 6% due to lower selling prices. H2 2016
pruning actions resulted in enhanced product mix and 52 bps of
improved adjusted EBITDA margin

Other sales were down versus prior year, but benefitted at the
adjusted EBITDA margin level from the new tolling arrangement

Full Year 2018 Outlook

The Company expects full year 2018 revenues to grow 12% to 14% due to
the annualized contributions from Novel Ingredients and NutraGenesis,
favorable growth in the nutrition end-markets served, and stabilization
in the base business.

Due primarily to recently enacted tax reform, Innophos is lowering its
estimated effective tax rate for 2018 from the typical 32% to 33% range
to 27% to 29% given the geographical mix in earnings. The Company is
carefully reviewing all aspects of tax reform and how they may impact
2018 financials.

Full year GAAP EPS is expected to more than double in 2018. Adjusted EPS
and Adjusted EBITDA are expected to grow by 10% to 14% and 15% to 17%,
respectively. This includes an improvement in 2018 full year EPS of
approximately $0.16 per diluted share due to the lower effective tax
rate. Adjusted EBITDA margin is expected to approximate 17% of sales.

Adjusted EBITDA is forecasted to be weighted 45% toward H1 and 55%
toward H2 given the phasing of the benefits from the strategic value
chain repositioning and manufacturing optimization program, as well as
the integration of the acquisitions completed in 2017. The Company
expects to only modestly increase the use of cash to make targeted 2018
capital investments to support the aforementioned program.

The Company’s proactive selling price increase program that was
implemented in Q4 2017 is well underway and expected to sufficiently
offset the impact of forecasted input cost increases in 2018.

The Company remains on track to realize $4 million of expected
acquisition cost synergies in 2018, which will enhance the FHN adjusted
EBITDA margin profile.

Delivery of $10 million in Phase 2 Operational excellence savings is
expected in 2018, compared with $3 million recorded in 2017.

Conference Call

Innophos will host its fourth quarter and full year 2017 conference call
today February 21, 2018 at 9:00 am ET to discuss its earnings results.
The call can be accessed by dialing (877) 604-1612 (U.S.) or (201)
389-0883 (international). No passcode is required. Please dial in
approximately 15 minutes ahead of the start time to ensure timely entry
to the call. The Q4 and full year 2017 earnings call presentation will
be made available on the Company’s website the morning of the call. A
replay will be available between approximately 11:30 am ET on February
21 and 11:59 pm ET on March 7, 2018. The replay is accessible by dialing
(877) 660-6853 (U.S.) or (201) 612-7415 (international) and entering the
Conference ID number 13675665.

Additional information on Innophos’ fourth quarter and full year 2017
results can also be found on the Company’s website.

About the Company

Innophos is a leading international producer of specialty ingredient
solutions that deliver far-reaching, versatile benefits for the food,
health, nutrition and industrial markets. We leverage our expertise in
the science and technology of blending and formulating phosphate,
mineral, enzyme and botanical based ingredients to help our customers
offer products that are tasty, healthy, nutritious and economical. In
2017, Innophos acquired Novel Ingredients and NutraGenesis, further
expanding its food, health and nutrition platform. Headquartered in
Cranbury, New Jersey, Innophos has manufacturing operations across the
United States, in Canada, Mexico and China. For more information, please
visit www.innophos.com.
'IPHS-G'

Financial Tables Follow

Safe Harbor for Forward-Looking and Cautionary
Statements

This press release contains or may contain forward-looking statements
within the meaning of Section 27a of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The Company intends these forward-looking statements to be
covered by the safe harbor provisions for such statements. Statements
made in this press release that relate to our future performance or
future financial results or other future events (which may be identified
by such terms as “expect”, “estimate”, “anticipate”, “assume”,
“believe”, “plan”, “intend’, “may”, “will”, “should”, “outlook”,
“guidance”, “target”, “opportunity”, “potential” or similar terms and
variations or the negative thereof) are forward-looking statements,
including the Company’s expectations regarding the business environment
and the Company’s overall guidance regarding future performance and
growth. These statements are based on our current beliefs and
expectations and are subject to significant risks and uncertainties.
Actual results may materially differ from the expectations expressed in
or implied by these forward-looking statements. Factors that could cause
the Company’s actual results to differ materially include, but are not
limited to: (1) global macroeconomic conditions and trends; (2) the
behavior of financial markets, including fluctuations in foreign
currencies, interest rates and turmoil in capital markets; (3) changes
in regulatory controls regarding tariffs, duties, taxes and income tax
rates; (4) the Company’s ability to implement and refine its Vision 2022
strategic roadmap; (5) the Company’s ability to successfully identify
and complete acquisitions in line with its Vision 2022 strategic roadmap
and effectively operate and integrate acquired businesses to realize the
anticipated benefits of those acquisitions; (6) the Company’s ability to
realize expected cost savings and efficiencies from its performance
improvement and other optimization initiatives; (7) the Company’s
ability to effectively compete in its markets, and to successfully
develop new and competitive products that appeal to its customers; (8)
changes in consumer preferences and demand for the Company’s products or
a decline in consumer confidence and spending; (9) the Company’s ability
to benefit from its investments in assets and human capital and the
ability to complete projects successfully and on budget; (10) economic,
regulatory and political risks associated with the Company’s
international operations, most notably Mexico and China; (11) volatility
and increases in the price of raw materials, energy and transportation,
and fluctuations in the quality and availability of raw materials and
process aids; (12) the impact of a disruption in the Company’s supply
chain or its relationship with its suppliers; (13) the Company’s ability
to comply with, and the costs associated with compliance with, U.S. and
foreign environmental protection laws and (14) the Company’s ability to
meet quality and regulatory standards in the various jurisdictions in
which it has operations or conducts business. We caution you to consider
the important risks and other factors as set forth in the
forward-looking statements section and in Item 1A Risk Factors in our
most recent Annual Report on Form 10-K, as amended by subsequent reports
on Forms 10-Q and 8-K. We do not undertake to update the forward-looking
statements to reflect the impact of circumstances or events that may
arise after the date of the forward-looking statements.

Summary Profit & Loss Statement

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Operations (Unaudited)

(Dollars In thousands, except per share amounts or share amounts)

Three Months Ended December 31,

Year Ended December 31,

2017

2016

2017

2016

Net sales

$193,100

$167,790

$722,024

$725,345

Cost of goods sold

160,659

134,805

572,995

574,953

Gross profit

32,441

32,985

149,029

150,392

Operating expenses:

Selling, general and administrative

22,160

15,839

82,229

67,555

Research & development expenses

1,020

826

3,733

3,739

Total operating expenses

23,180

16,665

85,962

71,294

Operating income

9,261

16,320

63,067

79,098

Interest expense, net

2,572

2,042

7,008

7,669

Foreign exchange loss (gain)

(543)

684

(578)

1,111

Income before income taxes

7,232

13,594

56,637

70,318

Provision for income taxes

18,515

4,212

34,192

22,347

Net income

($11,283)

$9,382

$22,445

$47,971

Diluted Earnings Per Participating Share

($0.58)

$0.47

$1.13

$2.44

Diluted weighted average participating shares outstanding

19,530,339

19,678,598

19,733,410

19,581,476

Dividends paid per share of common stock

$0.48

$0.48

$1.92

$1.92

Dividends declared per share of common stock

$0.48

$0.48

$1.92

$1.92

Adjusted Net Income Reconciliation to Net Income

(Dollars in thousands, except EPS)

Three Months Ended December 31,

Year Ended December 31,

2017

2016

2017

2016

Net Income (loss)

($11,283)

$9,382

$22,445

$47,971

Pre-tax Adjustments

Foreign exchange loss (gain)

(543)

684

(578)

1,110

Severance/Restructuring expense (income)

358

-

2,982

1,465

Inventory fair value adjustment

2,905

-

4,300

-

M&A related costs

2,325

-

5,279

-

Operating expense related to refinancing

-

585

-

585

Total Pre-tax Adjustments

5,045

1,269

11,983

3,160

Income tax effects on Adjustments

857

394

3,097

976

Addback tax reform charges

17,286

-

17,286

-

Adjusted Net Income

$10,191

$10,257

$48,617

$50,155

Adjusted Diluted Earnings Per Participating Share

$0.52

$0.52

$2.46

$2.55

Adjusted EBITDA Reconciliation to Net Income

(Dollars in thousands)

Three Months Ended December 31,

Year Ended December 31,

2017

2016

2017

2016

Net Income

($11,283)

$9,382

$22,445

$47,971

Interest expense, net

2,572

2,042

7,008

7,669

Provision for income taxes

18,515

4,212

34,192

22,347

Depreciation & amortization

11,395

8,872

40,404

37,479

EBITDA

21,199

24,508

104,049

115,466

Adjustments

Non-cash stock compensation

826

493

3,823

3,077

Foreign exchange loss (gain)

(543)

684

(578)

1,111

Severance/Restructuring expense (income)

358

-

2,982

1,465

Inventory fair value adjustment

2,905

-

4,300

-

M&A related costs

2,325

-

5,279

-

Operating expenses related to refinancing

-

585

-

585

Adjusted EBITDA

$27,070

$26,270

$119,855

$121,704

Percent of Sales

14.0%

15.7%

16.6%

16.8%

Segment Adjusted EBITDA Reconciliation to EBITDA

(Dollars in thousands)

Three Months Ended December 31, 2017

Three Months Ended December 31, 2016

FHN

IS

Other

Total

FHN

IS

Other

Total

EBITDA

$18,058

$2,167

$974

$21,199

$18,802

$6,095

($389)

$24,508

Non-cash stock compensation

468

327

31

826

282

197

14

493

Foreign exchange loss (gain)

(75)

0

(468)

(543)

0

0

684

684

Severance/Restructuring exp.(inc.)

209

132

17

358

0

0

0

0

Inventory fair value adjustment

2,905

0

0

2,905

0

0

0

0

M&A related costs

0

0

2,325

2,325

0

0

0

0

Operating exp. related to refinancing

0

0

0

0

275

262

48

585

Adjusted EBITDA

$21,565

$2,626

$2,879

$27,070

$19,359

$6,554

$357

$26,270

Year Ended December 31, 2017

Year Ended December 31, 2016

FHN

IS

Other

Total

FHN

IS

Other

Total

EBITDA

$67,156

$33,833

$3,060

$104,049

$78,128

$36,029

$1,309

$115,466

Non-cash stock compensation

2,164

1,514

145

3,823

1,761

1,230

86

3,077

Foreign exchange loss (gain)

(176)

0

(402)

(578)

0

0

1,111

1,111

Severance/Restructuring exp.(inc.)

1,505

1,434

43

2,982

340

0

1,125

1,465

Inventory fair value adjustment

4,300

0

0

4,300

0

0

0

0

M&A related costs

0

0

5,279

5,279

0

0

0

0

Operating exp. related to refinancing

0

0

0

0

275

262

48

585

Adjusted EBITDA

$74,949

$36,781

$8,125

$119,855

$80,504

$37,521

$3,679

$121,704

Segment Reporting

Three Months Ended December 31,

Year Ended December 31,

Segment Net Sales

2017

2016

2017

2016

Food, Health and Nutrition

$115,740

$90,012

$397,298

$376,672

Industrial Specialties

63,908

61,693

262,704

278,284

Other

13,452

16,085

62,022

70,389

Total

$193,100

$167,790

$722,024

$725,345

Net Sales % change

Food, Health and Nutrition

28.6%

5.5%

Industrial Specialties

3.6%

(5.6)%

Other

(16.4)%

(11.9)%

Total

15.1%

(0.5)%

Segment EBITDA

Food, Health and Nutrition

$18,058

$18,802

$67,156

$78,128

Industrial Specialties

2,167

6,095

33,833

36,029

Other (a)

974

(389)

3,060

1,309

Total

$21,199

$24,508

$104,049

$115,466

Segment EBITDA % of net sales

Food, Health and Nutrition

15.6%

20.9%

16.9%

20.7%

Industrial Specialties

3.4%

9.9%

12.9%

12.9%

Other (a)

7.2%

(2.4)%

4.9%

1.9%

Total

11.0%

14.6%

14.4%

15.9%

Depreciation and amortization expense

Food, Health and Nutrition

$7,328

$4,424

$24,212

$20,269

Industrial Specialties

3,517

3,091

13,863

12,645

Other

550

1,357

2,329

4,565

Total

$11,395

$8,872

$40,404

$37,479

(a) The year ended December 31, 2016 includes $1.5 million charge to
earnings for restructuring costs.

Price / Volume

The Company calculates pure selling price dollar variances as the
selling price for the current year to date period minus the selling
price for the prior year to date period, and then multiplies the
resulting selling price difference by the prior year to date period
volume. The current quarter selling price dollar variance is derived
from the current quarter year to date selling price dollar variance less
the previous quarter year to date selling price dollar variance. The
selling price dollar variance is then divided by the prior period sales
dollars to calculate the percentage change. Volume/mix variance is
calculated as the total sales variance minus the selling price variance.
The following table illustrates the percentage changes in net sales by
reportable segments compared with the same period of the prior year,
including the effect of selling price and volume/mix changes upon
revenue:

Three Months Ended December 31, 2017

Year Ended December 31, 2017

Reportable Segments

Price

Volume/Mix

Total

Price

Volume/Mix

Total

Food, Health and Nutrition

(0.8)%

29.4%

28.6%

(2.9)%

8.4%

5.5%

Industrial Specialties

(3.8)%

7.4%

3.6%

(5.6)%

--- %

(5.6)%

Other

14.2%

(30.6)%

(16.4)%

(2.4)%

(9.5)%

(11.9)%

Total

(0.4)%

15.5%

15.1%

(3.9)%

3.4%

(0.5)%

Summary Cash Flow Statement

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)

Year Ended December 31,

2017

2016

Cash flows provided from operating activities

Net income

$22,445

$47,971

Adjustments to reconcile net income to net cash provided from

operating activities:

Depreciation and amortization

40,404

37,479

Amortization of deferred financing charges

429

680

Deferred income tax (benefit) provision

10,411

9,534

Gain on sale of building

(153)

-

Share-based compensation

3,823

2,822

Changes in assets and liabilities:

(Increase) decrease in accounts receivable

(11,020)

2,058

Decrease in inventories

5,749

44,012

Decrease (increase) in other current assets

1,426

(634)

Increase in accounts payable

3,131

14,703

Decrease in other current liabilities

(5,751)

(18,926)

Changes in other long-term assets and liabilities

9,723

(590)

Net cash provided from operating activities

80,617

139,109

Cash flows used for investing activities:

Capital expenditures

(41,487)

(36,599)

Proceeds from sale of building

1,028

-

Acquisition of businesses, net of cash acquired

(150,999)

-

Net cash used for investing activities

(191,458)

(36,599)

Cash flows provided by (used for) financing activities:

Proceeds from exercise of stock options

205

17

Long-term debt borrowings

204,000

41,000

Long-term debt repayments

(79,000)

(69,002)

Deferred financing costs

-

(1,495)

Excess tax (deficiency) benefit from exercise of stock options

-

(9)

Restricted stock forfeitures

(1,195)

(366)

Dividends paid

(37,468)

(37,217)

Net cash provided by (used for) financing activities

86,542

(67,072)

Effect of foreign exchange rate changes on cash and cash equivalents

(406)

144

Net change in cash

(24,705)

35,582

Cash and cash equivalents at beginning of period

53,487

17,905

Cash and cash equivalents at end of period

$28,782

$53,487

Cash From Operations Reconciliation to EBITDA

(Dollars in thousands)

Three Months Ended December 31,

Year Ended December 31,

2017

2016

2017

2016

EBITDA

$21,199

$24,508

$104,049

$115,466

Operating Working Capital

15,246

25,224

(3,786)

57,611

Taxes paid

(866)

6,892

(14,890)

(27,945)

Interest paid

(2,462)

(2,747)

(6,753)

(8,045)

All other including non-cash stockcompensation and changes
in otherlong-term assets and liabilities

843

3,428

1,997

2,022

Net cash provided from operations

$33,960

$57,305

$80,617

$139,109

Cash From Operations Reconciliation to Adjusted
EBITDA

(Dollars in thousands)

Three Months Ended December 31,

Year Ended December 31,

2017

2016

2017

2016

Adjusted EBITDA

$27,070

$26,270

$119,855

$121,704

Operating Working Capital

10,201

23,955

(15,769)

54,450

Taxes paid

(866)

6,892

(14,890)

(27,945)

Interest paid

(2,462)

(2,747)

(6,753)

(8,045)

All other including changes in otherlong-term assets and
liabilities

17

2,935

(1,826)

(1,055)

Net cash provided from operations

$33,960

$57,305

$80,617

$139,109

Free Cash Flow Reconciliation to Cash From
Operations

(Dollars in thousands)

Three Months Ended December 31,

Year Ended December 31,

2017

2016

2017

2016

Cash From Operations

$33,960

$57,305

$80,617

$139,109

Capital Expenditures

(16,837)

(10,924)

(41,487)

(36,599)

Free Cash Flow

$17,123

$46,381

$39,130

$102,510

Summary Balance Sheets

INNOPHOS HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(Dollars In thousands)

December 31,2017

December 31,2016

ASSETS

Current assets:

Cash and cash equivalents

$28,782

$53,487

Accounts receivable, net

100,820

77,692

Inventories

145,685

128,295

Other current assets

24,969

23,894

Total current assets

300,256

283,368

Property, plant and equipment, net

219,297

205,459

Goodwill

152,700

84,373

Intangibles and other assets, net

112,916

69,811

Total assets

$785,169

$643,011

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Current portion of capital leases

$4

$0

Accounts payable, trade and other

70,445

51,611

Other current liabilities

43,084

43,605

Total current liabilities

113,533

95,216

Long-term debt

310,005

185,000

Other long-term liabilities

28,072

15,569

Total stockholders’ equity

333,559

347,226

Total liabilities and stockholders’ equity

$785,169

$643,011

Additional Information

Net debt is a supplemental financial measure that is not required by, or
presented in accordance with, US GAAP. The Company believes net debt is
helpful in analyzing leverage and as a performance measure for purposes
of presentation in this release. The Company defines net debt as total
long-term debt (including any current portion) less cash and cash
equivalents.

Free cash flow is a supplemental financial measure that is not required
by, or presented in accordance with, US GAAP. The Company believes free
cash flow is helpful in analyzing the cash flow generating capability of
the business and as a performance measure for purposes of presentation
in this release. The Company defines free cash flow as net cash provided
from operating activities plus cash used for capital expenditures.

EBITDA, adjusted EBITDA, adjusted net income and adjusted diluted EPS
are supplemental financial measures that are not required by, or
presented in accordance with, US GAAP. The Company believes EBITDA and
adjusted EBITDA are helpful in analyzing the cash flow generating
capability of the business and as performance measures for purposes of
presentation in this release.

Net Working Capital is a supplemental financial measure that is not
required by, or presented in accordance with, US GAAP. The Company
believes net working capital is helpful in analyzing the effects on the
cash flow generating capability of the business and as a performance
measure for purposes of presentation in this release. The Company
defines net working capital as total current assets less cash less total
current liabilities.

Operating Working Capital is a supplemental financial measure that is
not required by, or presented in accordance with, US GAAP. The Company
believes operating working capital is helpful in analyzing the effects
on the cash flow generating capability of the business and as a
performance measure for purposes of presentation in this release. The
Company defines operating working capital as net working capital less
taxes less interest.

Innophos is not able to provide a reconciliation of its 2022 expectation
for Adjusted EBITDA margin to GAAP net income due to the number of
variables in the projected EBITDA margin for 2022 and because we are
currently unable to quantify accurately certain amounts that would be
required to be included in GAAP net income or the individual adjustments
for such reconciliation. In addition, we believe such reconciliation
would imply a degree of precision that would be confusing or misleading
to investors.